Order fulfillment, is it really that simple? Yes, it’s just the process of getting a purchased item from the seller to the buyer. So, what is order fulfillment? The entire process of completing an online order involves multiple steps. The process begins with a click on the “Order Now” button and ends with the delivery of the purchased product. Your delivery method, customer satisfaction level and the overall cost of running your business will depend heavily on the processes used to complete each step.
Simple Definition of Order Fulfillment
The process of fulfilling an order includes every step required to complete an individual customer’s purchase. The process begins when the company receives the customer’s order and concludes when the product(s) purchased have been delivered to the customer.
The process often includes:
- Receiving as well as storing inventory.
- Processing orders of customers.
- Picking the products from the warehouse shelves.
- Packing items for transporting safely.
- Shipping orders as well as tracking delivery.
Each step must work well to keep orders accurate and on time.
How Does Order Fulfillment Work?
Once you see the entire process of “what is order fulfillment,” it will be easier for you to understand what order fulfillment involves.
Step 1: Receive the Order
When a customer buys something through an internet-based retail business (store), marketplace, etc., the system creates a record of the purchase details and verifies that the transaction was completed correctly.
Step 2: Check Inventory
The business checks to determine whether the product is in stock. By keeping accurate records of your products you can prevent over selling them, which leads to late delivery.
Step 3: Pick and Pack
The warehouse staff locates each product on order and confirms that it meets the company’s quality specifications. Once the quality of each product has been verified, the warehouse personnel use suitable packaging products to ensure that the products will not be damaged during transit.
Step 4: Ship the Package
The parcel is going to be delivered by a carrier. The customer has received tracking information that lets the customer check where the order is at all times as soon as it left the warehouse, up until the parcel is delivered.
Step 5: Handle Returns
Returns/exchanges may be required by customers. A simple return policy can help customers get what they need and help the business control its returned merchandise.
Common Order Fulfillment Models
Businesses can choose a model based on their size, budget, and needs.
| Model | How it works |
|---|---|
| In-house fulfillment | The business stores, packs, and ships its own products. |
| Third-party fulfillment | A logistics provider manages storage and shipping. |
| Dropshipping | A supplier ships products directly to the customer. |
Each model has different costs and levels of control.
Why Order Fulfillment Matters?
A business can utilize an efficient fulfillment process to reduce errors when fulfilling orders, control shipping costs and deliver products on-time. An effective fulfillment process can also build customer trust in your company by providing customers with a positive shopping experience.
After reading “what is order fulfillment,” it will become obvious that order fulfillment is a much larger concept than merely sending a package to a customer. Instead, order fulfillment is an entire process that allows businesses to deliver exceptional customer service and expand their business through increased confidence.